If the real deficit is $200 billion, the inflation rate is 5 percent, and the debt is $3 trillion, then the nominal deficit is:
A. $300 billion.
B. $350 billion.
C. $250 billion.
D. $100 billion.
Answer: B
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Trade restrictions like tariffs and quotas will
A) ensure that more dollars stay in the United States. B) protect American jobs and increase employment. C) reduce the value of goods and services that we will be able to produce and consume. D) make all Americans better off.
If government adhered strictly to an annually balanced budget, the government's budget would
A. vary in a countercyclical fashion. B. tend to destabilize the economy. C. have no impact upon domestic output and employment. D. tend to stabilize the economy.
A country will gain relatively more from trade when
A) trade is regulated. B) the world price is close to the country's opportunity cost of the good. C) the world price is below the country's opportunity cost of the good. D) the world price is much greater than the country's opportunity cost for the good.
Refer to the above table. The table represents information on the costs for Ajax Corporation. Ajax operates in a perfectly competitive market and the price of the product is $10. What does profit equal when quantity equals 4?
A. $10 B. $4 C. $40 D. $8